jgcurtis1961 Posted November 9, 2006 Share Posted November 9, 2006 Hi, I have a question for all of you candlemakers with insurance out there. I've been checking around for product liability insurance and have been having a devil of a time getting any answers from any insurance companies in the area. I live in Nebraska and I finally got one guy out of South Dakota to take me seriously today but he's telling me that I only need a general liability policy NOT a product liability policy since I'm putting ingredients together that I purchase from suppliers who carry the product or manufacture the products themselves..so therefore they will be just as liable for the product as I am. So my question is this do I need a General liability insurance or Product Liability policy? I did explain to him that I am responsible for how I wick the product. Like if for example I would over wick the product and it turns into a blow torch and burns someones house down; or put to much fragrance oil in it and have the oil catch on fire. He said he understands that, but his take on it was that the customer will have to PROVE my negligence and that a general liability policy would cover me if they took me to court...so now hmmmm what to do? At least someone FINALLY acted like they were going to try to find me some coverage so thats good. :smiley2: Quote Link to comment Share on other sites More sharing options...
funnygirl Posted November 9, 2006 Share Posted November 9, 2006 Blah, I wish I had an exact right answer for you, but all I can tell you is that I carry product liabilty insurance. My insurer said the opposite of yours, because I am actually making the candles myself, and am taking lots of ingredients and making my own product. The manufactures have no control on what you do with their products, so I cant see how they would be liable at all. As a matter of fact, most suppliers have a notice on the site that states "We are not responsible for products you make with our supplies" or something to that affect. If you were purchasing wax that was already scented that came with a specific wick and jar, like one of those instant candle type things, then maybe that might be the case, Im not sure. I would just rather be covered for sure. I only pay about $500/yr for my product liability, so I will stick with that. Quote Link to comment Share on other sites More sharing options...
Kelly Posted November 9, 2006 Share Posted November 9, 2006 Well, even though the suppliers site has that warning on it, you could still go back and sue them (probably not successfully ~ unless you prove the supplies were somehow defective, you'll have to prove it without a doubt). That kind of warning actually means very little, but people aren't aware of this (I asked a lawyer about this awhile back). If those warnings were all one needed to protect themselves from being sued, you could put the same warning on your candle "We aren't responsible from any kind of damage(s) that may occurr from burning this candle".... It may stop some people from sueing because a lot of people are unaware of the fact that you can still sue regardless of those kinds of warnings.For example, if a person goes into surgery, they have to sign a waiver stating they won't sue the hospital (or doctor) if something goes wrong. BUT, a little known fact, you can still sue the hospital (or doctor) even though you signed that waiver, and a lot of times successfully.But anyway, even if someone burns their house down and they claim it was because your candle was not properly configured, they will have to without a doubt prove that. And good luck to them for that, because that can be awefully hard to prove.With all that said though, people do win suits for crazy things so it's better to be protected, that way you don't have to deal with drawn out court battles.~~Kelly~~ Quote Link to comment Share on other sites More sharing options...
jgcurtis1961 Posted November 9, 2006 Author Share Posted November 9, 2006 Well bad news the insurance company guy just called and said that he talked to his main office in Fargo and that it is going to be really hard to find insurance for someone making candles, so I probabally won't be able to get insurance through them either...geesh this is crazy..ba humbug. I guess I have to keep looking.:embarasse Quote Link to comment Share on other sites More sharing options...
Kelly Posted November 9, 2006 Share Posted November 9, 2006 You may want to check into the soap makers guild? There was a post recently that you can get insurance with your membership.You might want to search the posts to see if you can find the thread I'm talking about or visit the soap makers guild website. Supposedly it covers candlemakers as well as soap makers.Hope that helps!~~Kelly~~ Quote Link to comment Share on other sites More sharing options...
katie Posted November 10, 2006 Share Posted November 10, 2006 I only make candles so I couldn't go through the soapguild.They refered me to The Handmade Beauty Network, and you can get insurance through their membership, with membership and insurance I paid about $516. This was the best offer that I could find in my area. I was quoted $1200 and up. And it was super quick less only a few days and I had my insurance cert. asap and they are very helpful.Hope this helps.My insurance is for Product Liability 1,000,000 coverage. Quote Link to comment Share on other sites More sharing options...
flutterbye Posted November 10, 2006 Share Posted November 10, 2006 I only make candles so I couldn't go through the soapguild.They refered me to The Handmade Beauty Network, and you can get insurance through their membership, with membership and insurance I paid about $516. This was the best offer that I could find in my area. I was quoted $1200 and up.And it was super quick less only a few days and I had my insurance cert. asap and they are very helpful.Hope this helps.My insurance is for Product Liability 1,000,000 coverage.Has anybody else went through The Handmade Beauty network? This looks very interesting since my best quote was $800/month in my area. Any more info on them would be greatly appreciated. I've checked out their website but am still feeling a little uneasy about them... Quote Link to comment Share on other sites More sharing options...
ah-soy Posted November 10, 2006 Share Posted November 10, 2006 Why don't you make a few bars of melt and pour soap and join the guild? 500 bucks a year for a million in coverage would be worth it...LOL!I think the policies at the Guild and the Beauty Network are the same company. The two organizations worked together to negotiate it (I believe)! Quote Link to comment Share on other sites More sharing options...
katie Posted November 10, 2006 Share Posted November 10, 2006 If you look at both websites I think the insurance contact is the same person for the soapguild and handmade beauty network. Quote Link to comment Share on other sites More sharing options...
jgcurtis1961 Posted November 10, 2006 Author Share Posted November 10, 2006 Yea I am considering doing that next if one other company I am trying doesn't pan out. I make all of our own soap using a melt and pour base for my family anyway. I just didn't want to get into the labeling required with the bath and body products. It seems really complicated about how you have to list every ingredient in the melt and pour base you use and then if I add shea butter or jajoba oil or something like that I have to list the percentages of that right..and the dye I use ect. But if the company suggested to me by another member here doesn't pan out The hand made soap guild is probabally where I'll go. Quote Link to comment Share on other sites More sharing options...
TeriM Posted November 10, 2006 Share Posted November 10, 2006 I know this is confusing to some of you so I'll try and explain it best I can. When you purchase a liability policy it will include Products/Completed Operations unless it is excluded... here is the definition of it that would be on the policy: Products/Completed OperationsThis coverage is used to insure against claims arising out of bodily injury and property damage that results from products you have sold, manufactured, handled, distributed or disposed of, or for work you have performed, provided the accident occurs away from premises you own or rent.I hope this helps some of you out... TeriM Quote Link to comment Share on other sites More sharing options...
Kelly Posted November 10, 2006 Share Posted November 10, 2006 Yea I am considering doing that next if one other company I am trying doesn't pan out. I make all of our own soap using a melt and pour base for my family anyway. I just didn't want to get into the labeling required with the bath and body products. It seems really complicated about how you have to list every ingredient in the melt and pour base you use and then if I add shea butter or jajoba oil or something like that I have to list the percentages of that right..and the dye I use ect. But if the company suggested to me by another member here doesn't pan out The hand made soap guild is probabally where I'll go.I'm pretty sure soaps in the USA do not have any labeling requirements. Check out the FDA website, but when I was looking into making lotions I noticed that you don't have to list your soap ingrediants, only lotions, lip balms and the like. Even though it's not a requirement it still might limit your sales, because people like to know whats in their body care products.~~Kelly~~ Quote Link to comment Share on other sites More sharing options...
NotJustFragrances Posted November 10, 2006 Share Posted November 10, 2006 I thought I remember the soap guild have it stated somewhere that this policy would do candles and they would allow candle people to join the soap guild too. Quote Link to comment Share on other sites More sharing options...
KatieB Posted November 10, 2006 Share Posted November 10, 2006 Just thought I'd share my experience with the Handmade Beauty Network thus far. I haven't joined or anything yet, but I did email for information this morning regarding the insurance and the reply I received was both prompt and informative. I believe the president of the group was the one that responded. I was afraid that their policy only covered retail (because I was considering joining the Ohio Arts and Crafts Guild for their insurance and then read on here somewhere that their policy doesn't cover wholesale, and I need to be covered for that) and she answered all my questions thoroughly. She also sent me another email with the entire master policy for review. I had my hubby look over it (because I'm clueless with this type of thing) and he thinks it is a pretty good policy. And, it does cover candlemakers. I believe the Soap Guild requires that you do soap in order to join. I know the Guild has a referral for candlemakers on their site that directs to Handmade Beauty Network for the insurance.I'll definitely be joining. $516 annually is amazing. I was paying $1600/year for insurance and my policy is up for renewal. Just think of all the FO's I can get with that extra $1100. lol PS: In case you are wondering, this policy DOES cover wholesale as well as retail. Quote Link to comment Share on other sites More sharing options...
Chauna1 Posted November 10, 2006 Share Posted November 10, 2006 What are these companies website address'?Chauna Quote Link to comment Share on other sites More sharing options...
David Fields Posted November 10, 2006 Share Posted November 10, 2006 We carry only general liability insurance. Our insurance agent said that product liability insurance would be nice to have but is prohibitively expensive. And before an insurere will underwrite your products there is an extensive study of your products by the company. General liability insurance will cover someone falling on your property, your travel to/from shows and stuff like that. If you have a retail site, the landlord will require general liability insurance. The premium depends a lot on your yearly sales. We pay $850/yr for 2M in coverage. Go through your local independent insurance agent who will research the best deals. Quote Link to comment Share on other sites More sharing options...
dee263 Posted November 12, 2006 Share Posted November 12, 2006 What are these companies website address'?Chaunahttp://www.soapguild.org/http://www.handmadebeauty.com/ Quote Link to comment Share on other sites More sharing options...
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